Super fund advice on par

Expanded intra-fund advice would not compromise the quality of financial advice Australians receive because it is governed by the same rules and regulations as other advice, according to Association of Superannuation Funds of Australia (ASFA) chief executive Pauline Vamos (pictured).

Vamos disputed suggestions from Financial Services Council (FSC) chief executive John Brogden that expanded intra-fund advice would dilute the quality of advice received by Australians.

In a speech outlining the FSC’s position on the proposed Future of Financial Advice (FOFA) reforms, Brogden said that expanded intra-funds advice was a poor substitute for the tailored, quality financial advice Australians needed.

“Expanded intra-fund advice will be delivered by super funds on matters like transition to retirement and social security — areas that are far beyond the duties and expertise of super fund trustees,” Brogden said.

Despite agreeing with much of what Brogden presented and also supporting a level playing field when it came to financial advice, ASFA chief executive Pauling Vamos said that to deliver scaled, full, intra-fund advice, the licensing requirements and therefore the minimum requirements under RG146 weren’t reduced.

Constant comments about advice provided by super fund trustees being less qualified than that of other financial planners was just not correct, and most funds employed fully qualified financial planners, Vamos said.

“We support the professionalisation of the industry but we also support the delivery of scaled advice in a cost-effective manner to all members of funds,” Vamos said.

“The most significant outcome from FOFA has to be the regulatory framework around scaled advice.”